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Wed 27 Feb 2013

Argentina and creditors meet over $1.3bn payment

  • By Anne Cukier and 1 other
  • Last Update: 4 years ago
  • New York, New York, United States

Argentina argues against a ruling in court regarding a $1.3 billion reimbursement it was ordered to pay foreign creditors it defaulted on in 2001.

The country was earlier given a  December 15 deadline to pay the plaintiffs the money it still owes them from the country's dictatorial period from 1976 to 1983. However, a stay granted by a New York court in December gave Argentina time to appeal against the ruling. 

The military junta more than tripled the Argentine foreign debts, ultimately causing the collapse of the economy in 2001.

The current President of Argentina, Cristina Fernandez, has always considered the $95 billion debt, which is the highest in the world, as illegitimate. She argues that it has been forced onto Argentina's population by the military junta.

As long as Argentina does not pay the $1.3 billion, the judge has forbidden the government to pay other bondholders. The ban could trigger another historic Argentine debt default, which could affect the already fragile global economy.

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